Imlek looking to add to domestic dairy business

Imlek looking to add to domestic dairy business

Imlek's move to acquire fellow Serbian dairy group Niska Mlekara is to face an investigation from the country's competition watchdog.

The deal would see Imlek buy what Serbia's Commission for Protection of Competition called a "direct competitor".

"After having examined submitted documents, and based on all the facts arising from the content of the notification, [the] Commission has found that by implementation of notified concentration, Imlek would strenghten its position in the market for [the] purchase of raw cow's milk, production and sales of milk and dairy products, since Imlek and Nis Dairy are direct competitors, and that Imlek is the strongest participant in the relevant market," the Commission said.

The anti-trust body is to look into whether the acquisition would "significantly restrict, distort or prevnt competition" in Serbia's dairy sector.

Imlek had not returned a request for comment at the time of publication.

The company is part of Serbia-based dairy and confectionery company Danube Foods Group, which also owns another dairy processor in the country, Mlekara Subotica.

Danube Foods Group is owned by private-equity firm Mid Europa Partners.